HCMC – Securities brokers predicted the market would see saw in narrow range again this week with a VN-Index hovering between 445 to 460 points as investors would continue waiting for clearer information relating to Decree 13.
The market ended the previous week with three falling and two rising sessions while liquidity sharply tumbled on Wednesday and Friday. The VN-Index lost 7.87 points, or 1.72%, against the previous week to close at 449.71.
Although the global markets continued to stage positive developments, the local market was still impacted by bad information from the macro economy. Vietnam’s consumer price index (CPI) in September late last week was estimated to increase by 1.31% from August, taking the index to 6.46% in the first nine months of the year while gold and U.S. dollar deposit rates increased.
“The information will keep investors away from the playground this week. Meanwhile, they are worried that supply may far exceed demand as many enterprises will list on the bourse in the future while the cash flow has yet to improve,” said APEC Securities Co.
However, trading volume on the market improved strongly, averaging out at 46.7 million shares worth nearly VND1.2 trillion daily, increasing by 11% and 21.6% against the week earlier respectively. Closing the week, only 49 stocks gained grounds while up to 189 stocks ended with losses.
Foreign participation once again decreased but the investors remained net buyers for around 18.2 million shares worth VND759 billion during the week.
“They were still important support for the index and, for the long-term vision, seem to acquire more blue-chips on the market,” APEC said.
HCMC Securities Corp. (HSC) said the September index that came out in strong increase of 1.31% proved all commentators who had anticipated a much lower figure over the past weeks completely wrong. “Therefore, the effect on investor sentiment can only be felt on Monday and we could certainly get a backlash from the higher than expected figure. The final version of Decree 13 is indeed said to contain very little to excite the banking sector, so we should not expect too much of that either,” HSC said.
“Nevertheless, it looks like we could be coming to the end of what has been an extended period of bad news and fear for even more bad news. That means that most of the negative pressure has already been incorporated into last Friday’s share prices. We normally should expect some pressure in the short term, but with the low valuations that we are seeing in the market, it seems that downside risk has become rather limited,” the broker added.
The Hanoi market saw up to four falling sessions last week after gaining a modest ground on the first trading day. The HNX-Index dropped 3.22 points, or 2.42%, from the week earlier to 129.63. The market’s liquidity was higher with the average daily volume of 36.5 million shares worth VND894 billion, increasing by 4% and 3.7% against the week earlier respectively.
